Argo Blockchain PLC Announces 2024 Annual Results and Restoration of Listing

Rhea-AI Summary

Argo Blockchain (NASDAQ:ARBK) has released its 2024 annual results, showing mixed performance and operational challenges. The company mined 755 Bitcoin in 2024 (2.1 per day), down from 1,760 in 2023. Revenue decreased 7% to $47.1 million, with mining margin falling to 33% from 43%, primarily due to Bitcoin halving impacts. The company reported a net loss of $55.1 million, largely due to a $31.5 million asset impairment. Despite challenges, Argo reduced its net debt by $24.1 million to $31.0 million and fully repaid its Galaxy debt. The company's cash position declined from $8.6 million in December 2024 to $2.4 million by March 2025. Post-period, Argo signed hosting agreements with Merkle Standard LLC and sold approximately 8,000 mining units, reducing its expected hashrate to 1.7 exahash. The company has requested the restoration of its listing with the Financial Conduct Authority.

Positive

• Full repayment of Galaxy debt during 2024
• Reduced net debt by $24.1 million to $31.0 million
• Reduced non-mining operating costs by 34% compared to 2023
• New hosting agreements secured with Merkle Standard LLC for over 13,000 miners

Negative

• Net loss increased to $55.1 million from $34.6 million in 2023
• Revenue declined 7% to $47.1 million
• Mining margin decreased to 33% from 43% in 2023
• Bitcoin production dropped to 755 from 1,760 in previous year
• Cash position declined significantly from $8.6M to $2.4M in Q1 2025
• Material uncertainties about going concern noted by auditors
• $31.5 million asset impairment charge

Insights

Cryptocurrency Mining Financial Analyst

Argo Blockchain faces severe financial deterioration with declining revenue, collapsing cash reserves, and significant going concern warnings despite debt reduction efforts.

Argo Blockchain's 2024 results reveal a deeply troubled operation with multiple concerning financial metrics. Revenue fell 7% to $47.1 million, while mining margin collapsed from 43% to 33% following the Bitcoin halving. The company posted a substantial net loss of $55.1 million - significantly worse than 2023's $34.6 million loss.

The dramatic deterioration of Argo's cash position is particularly alarming. While December 2024 showed $8.6 million in cash, by March 2025 this had plummeted to just $2.4 million - a 72% decline in just three months. This rapid cash burn rate indicates severe operational challenges.

The material uncertainties about going concern highlighted by auditors represent a red flag for investors, pointing to potential solvency issues. The $31.5 million asset impairment suggests substantial overvaluation of mining assets, likely reflecting the declining economics of Bitcoin mining post-halving.

While management highlights the full repayment of Galaxy debt as a positive achievement, this must be weighed against the severe operational decline. The company's significant strategic shifts - selling approximately 8,000 mining units for just $2 million and reducing hashrate to 1.7 exahash - signal retreat rather than growth.

The restoration of listing request indicates Argo's shares were previously suspended, adding regulatory concerns to the company's challenges. With declining production (755 Bitcoin mined vs 1,760 in 2023), rapidly depleting cash, and ongoing operational restructuring, Argo faces existential threats despite debt reduction efforts.

LONDON, ENGLAND / ACCESS Newswire / May 9, 2025 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), is pleased to announce its audited results for the year ended 31 December 2024. All figures have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and are stated in U.S. dollars. The directors have adopted the going concern basis of accounting in the preparation of the annual financial statements; more detail can be found in the accounting policies. However, the directors note that the debt service requirements, lower operating margins, and the volatile economic and industry environment, indicate the existence of material uncertainties that may cast significant doubt regarding the applicability of the going concern assumption, and the auditors have made reference to this in their audit report and additional information is included in Note 3 to the fianncial statements.

Highlights

• Total number of Bitcoin mined during 2024 was 755, or 2.1 Bitcoin per day (2023: 1,760, or 4.8 Bitcoin per day).

• Revenues of $47.1 million (2023: $50.6 million), a decrease of 7% from 2023, driven primarily by the reduced hashprice resulting from the Bitcoin halving.

• Mining margin of 33%, down from 43% in 2023. Similar to revenue, this decrease was largely attributable to the reduced hashprice resulting from the Bitcoin halving in April 2024.

• Reduced non-mining operating costs by 34% in 2024 compared to the prior year.

• Adjusted EBITDA of $5.7 million, compared to $7.7 million in 2023.

• Net loss of $55.1 million, compared to a net loss of $34.6 million in 2023. The net loss was primarily the result of a $31.5 million asset impairment, $15.0 million of amortization and $6.8 million of interest expense.

• Reduced interest expense by 41%, as a result of fully repaying the Galaxy debt during 2024.

• Net debt (cash less debt obligations) was reduced by $24.1 million from $55.1 million at 31 December 2023 to $31.0 million at 31 December 2024.

As at 31 December 2024, the Company had $8.6 million of cash, compared to $7.4 million at 31 December 2023. As at 31 March 2025, the Company had a cash balance of $2.4 million. The decrease from December reflects the costs required for refurbishing machines, Helios power payment for December 2024, significantly reduced mining margins, and hosting deposits.

Post-period highlights

The Group signed hosting agreements with Merkle Standard LLC to host 9,315 miners at Merkle's Memphis, Tennessee location and up to 4,000 machines at its Washington State location. Approximately 1,232 units were sent to the Group's Baie Comeau facility. A further approximately 8,000 units (6,000 were sold after 31 March 2025) were sold for cash proceeds of approximately $2.0 million. Our go forward hashrate, reflective of the machine sales, is expected to be 1.7 exahash.

During the month of April we continued the deployment of our Helios miners to our hosting sites and mined 13 Bitcoin. The deployment of these units will be completed by the end of May 2025.

Commenting on the results, Justin Nolan, Argo Blockchain CEO, said, "The repayment of the Galaxy debt during 2024 was a major achievement for the team, as was the successful refurbishment and rehosting of the Helios fleet. We continue to work on strengthening the balance sheet and pursuing strategic options."

The tables below reconcile Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, and Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure:

	Year ended	Year ended
	31-Dec	31-Dec
	2024	2023
	$'000	$'000
Gross profit	1,457	3,101
Depreciation of mining equipment	14,171	18,656
Mining profit	15,628	21,757
Bitcoin and Bitcoin Equivalent Mining Margin	33%	43%

The following table shows a reconciliation of Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure, for the years ended 31 December 2024 and 31 December 2023.

	Year ended	Year ended
	31-Dec	31-Dec
	2024	2023
	$'000	$'000
Net loss	(55,102)	(34,637)
Interest expense	6,810	11,556
Depreciation / amortisation	15,024	20,129
Income tax expense	340	-
EBITDA	(32,928)	(2,952)
Impairment of assets	31,498	855
Impairment of intangible assets	468	1,082
Loss/(gain) on sale of subsidiary and investments	842	(36)
Loss on sale of fixed assets	429	-
Loss/(gain) on disposal of intangible assets	98	(1,166)
Foreign exchange	(458)	(1,914)
Restructuring and transaction-related fees	1,976	4,969
Share based payment charge	3,759	3,892
Equity accounted loss from associate	0	716
Write off of investment	0	2,236
Adjusted EBITDA	5,684	7,682

Restoration of Listing

The Company would like to advise that, further to this announcement, it has now requested that the suspension of the Company's listing be lifted by the Financial Conduct Authority as soon as possible to enable trading of the Company's shares to resume.

This announcement contains inside information.

For further information please contact:

Argo Blockchain
Investor Relations	ir@argoblockchain.com
Tennyson Securities
Corporate Broker Peter Krens	+44 207 186 9030
Fortified Securities
Joint Broker Guy Wheatley, CFA	+44 7493 989014 guy.wheatley@fortifiedsecurities.com
Tancredi Intelligent Communication UK & Europe Media Relations	argoblock@tancredigroup.com

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With a mining facility in Quebec and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. For more information, visitwww.argoblockchain.com.

Forward looking statements

This announcement contains "forward-looking statements," which can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The information in this announcement about future plans and objectives of the Company are forward-looking statements. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, market and other conditions, the principal risks and uncertainties listed in the risk factors set forth in our Annual Report and Financial Statements and Form 20-F for the year ended 31 December 2024.

Please refer to the attached PDF document to view the full announcement:

http://www.rns-pdf.londonstockexchange.com/rns/9888H_1-2025-5-9.pdf

SOURCE: Argo Blockchain PLC

View the original press release on ACCESS Newswire

FAQ

What were Argo Blockchain's (ARBK) key financial results for 2024?

Argo reported revenue of $47.1M (down 7%), net loss of $55.1M, and Adjusted EBITDA of $5.7M. The company mined 755 Bitcoin with a mining margin of 33%, down from 43% in 2023.

How much debt did Argo Blockchain (ARBK) reduce in 2024?

Argo reduced its net debt by $24.1 million, from $55.1 million to $31.0 million, and fully repaid its Galaxy debt during 2024.

What caused Argo Blockchain's (ARBK) increased losses in 2024?

The increased net loss of $55.1M was primarily due to a $31.5M asset impairment, $15.0M in amortization, and $6.8M in interest expense, along with reduced mining margins from Bitcoin halving.

What are Argo Blockchain's (ARBK) current mining operations after recent changes?

After selling approximately 8,000 mining units and securing new hosting agreements with Merkle Standard LLC, Argo's expected hashrate is 1.7 exahash, with miners being deployed across Tennessee and Washington State locations.

What is the current status of Argo Blockchain's (ARBK) stock listing?

Argo has requested the Financial Conduct Authority to lift the suspension of its listing to enable trading of the company's shares to resume.